[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 420 Referred in Senate (RFS)]
109th CONGRESS
1st Session
H. R. 420
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
October 31, 2005
Received; read twice and referred to the Committee on the Judiciary
_______________________________________________________________________
AN ACT
To amend Rule 11 of the Federal Rules of Civil Procedure to improve
attorney accountability, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Lawsuit Abuse Reduction Act of
2005''.
SEC. 2. ATTORNEY ACCOUNTABILITY.
Rule 11(c) of the Federal Rules of Civil Procedure is amended--
(1) by amending the first sentence to read as follows: ``If
a pleading, motion, or other paper is signed in violation of
this rule, the court, upon motion or upon its own initiative,
shall impose upon the attorney, law firm, or parties that have
violated this subdivision or are responsible for the violation,
an appropriate sanction, which may include an order to pay the
other party or parties for the reasonable expenses incurred as
a direct result of the filing of the pleading, motion, or other
paper, that is the subject of the violation, including a
reasonable attorney's fee.'';
(2) in paragraph (1)(A)--
(A) by striking ``Rule 5'' and all that follows
through ``corrected.'' and inserting ``Rule 5.''; and
(B) by striking ``the court may award'' and
inserting ``the court shall award''; and
(3) in paragraph (2), by striking ``shall be limited to
what is sufficient'' and all that follows through the end of
the paragraph (including subparagraphs (A) and (B)) and
inserting ``shall be sufficient to deter repetition of such
conduct or comparable conduct by others similarly situated, and
to compensate the parties that were injured by such conduct.
The sanction may consist of an order to pay to the party or
parties the amount of the reasonable expenses incurred as a
direct result of the filing of the pleading, motion, or other
paper that is the subject of the violation, including a
reasonable attorney's fee.''.
SEC. 3. APPLICABILITY OF RULE 11 TO STATE CASES AFFECTING INTERSTATE
COMMERCE.
In any civil action in State court, the court, upon motion, shall
determine within 30 days after the filing of such motion whether the
action substantially affects interstate commerce. Such court shall make
such determination based on an assessment of the costs to the
interstate economy, including the loss of jobs, were the relief
requested granted. If the court determines such action substantially
affects interstate commerce, the provisions of Rule 11 of the Federal
Rules of Civil Procedure shall apply to such action.
SEC. 4. PREVENTION OF FORUM-SHOPPING.
(a) In General.--Subject to subsection (b), a personal injury claim
filed in State or Federal court may be filed only in the State and,
within that State, in the county (or if there is no State court in the
county, the nearest county where a court of general jurisdiction is
located) or Federal district in which--
(1) the person bringing the claim, including an estate in
the case of a decedent and a parent or guardian in the case of
a minor or incompetent--
(A) resides at the time of filing; or
(B) resided at the time of the alleged injury;
(2) the alleged injury or circumstances giving rise to the
personal injury claim allegedly occurred;
(3) the defendant's principal place of business is located,
if the defendant is a corporation; or
(4) the defendant resides, if the defendant is an
individual.
(b) Determination of Most Appropriate Forum.--If a person alleges
that the injury or circumstances giving rise to the personal injury
claim occurred in more than one county (or Federal district), the trial
court shall determine which State and county (or Federal district) is
the most appropriate forum for the claim. If the court determines that
another forum would be the most appropriate forum for a claim, the
court shall dismiss the claim. Any otherwise applicable statute of
limitations shall be tolled beginning on the date the claim was filed
and ending on the date the claim is dismissed under this subsection.
(c) Definitions.--In this section:
(1) The term ``personal injury claim''--
(A) means a civil action brought under State law by
any person to recover for a person's personal injury,
illness, disease, death, mental or emotional injury,
risk of disease, or other injury, or the costs of
medical monitoring or surveillance (to the extent such
claims are recognized under State law), including any
derivative action brought on behalf of any person on
whose injury or risk of injury the action is based by
any representative party, including a spouse, parent,
child, or other relative of such person, a guardian, or
an estate;
(B) does not include a claim brought as a class
action; and
(C) does not include a claim against a debtor in a
case pending under title 11 of the United States Code
that is a personal injury tort or wrongful death claim
within the meaning of section 157(b)(5) of title 28,
United States Code.
(2) The term ``person'' means any individual, corporation,
company, association, firm, partnership, society, joint stock
company, or any other entity, but not any governmental entity.
(3) The term ``State'' includes the District of Columbia,
the Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, and any other territory or possession of the
United States.
(d) Applicability.--This section applies to any personal injury
claim filed in Federal or State court on or after the date of the
enactment of this Act.
SEC. 5. RULE OF CONSTRUCTION.
Nothing in section 3 or in the amendments made by section 2 shall
be construed to bar or impede the assertion or development of new
claims or remedies under Federal, State, or local civil rights law.
SEC. 6. THREE-STRIKES RULE FOR SUSPENDING ATTORNEYS WHO COMMIT MULTIPLE
RULE 11 VIOLATIONS.
(a) Mandatory Suspension.--Whenever a Federal district court
determines that an attorney has violated Rule 11 of the Federal Rules
of Civil Procedure, the court shall determine the number of times that
the attorney has violated that rule in that Federal district court
during that attorney's career. If the court determines that the number
is 3 or more, the Federal district court--
(1) shall suspend that attorney from the practice of law in
that Federal district court for 1 year; and
(2) may suspend that attorney from the practice of law in
that Federal district court for any additional period that the
court considers appropriate.
(b) Appeal; Stay.--An attorney has the right to appeal a suspension
under subsection (a). While such an appeal is pending, the suspension
shall be stayed.
(c) Reinstatement.--To be reinstated to the practice of law in a
Federal district court after completion of a suspension under
subsection (a), the attorney must first petition the court for
reinstatement under such procedures and conditions as the court may
prescribe.
SEC. 7. PRESUMPTION OF RULE 11 VIOLATION FOR REPEATEDLY RELITIGATING
SAME ISSUE.
Whenever a party presents to a Federal court a pleading, written
motion, or other paper, that includes a claim or defense that the party
has already litigated and lost on the merits in any forum in final
decisions not subject to appeal on 3 consecutive occasions, and the
claim or defense involves the same plaintiff and the same defendant,
there shall be a rebuttable presumption that the presentation of such
paper is in violation of Rule 11 of the Federal Rules of Civil
Procedure.
SEC. 8. ENHANCED SANCTIONS FOR DOCUMENT DESTRUCTION IN PENDING FEDERAL
COURT PROCEEDINGS.
Whoever willfully and intentionally influences, obstructs, or
impedes, or attempts to influence, or obstruct, or impede, a pending
Federal court proceeding through the willful and intentional
destruction of documents sought pursuant to the rules of such Federal
court proceeding and highly relevant to that proceeding--
(1) shall be punished with mandatory civil sanctions of a
degree commensurate with the civil sanctions available under
Rule 11 of the Federal Rules of Civil Procedure, in addition to
any other civil sanctions that otherwise apply; and
(2) shall be held in contempt of court and, if an attorney,
referred to one or more appropriate State bar associations for
disciplinary proceedings.
SEC. 9. BAN ON CONCEALMENT OF UNLAWFUL CONDUCT.
(a) In General.--In any Rule 11 of the Federal Rules of Civil
Procedure proceeding, a court may not order that a court record not be
disclosed unless the court makes a finding of fact that identifies the
interest that justifies the order and determines that that interest
outweighs any interest in the public health and safety that the court
determines would be served by disclosing the court record.
(b) Applicability.--This section applies to any record formally
filed with the court, but shall not include any records subject to--
(1) the attorney-client privilege or any other privilege
recognized under Federal or State law that grants the right to
prevent disclosure of certain information unless the privilege
has been waived; or
(2) applicable State or Federal laws that protect the
confidentiality of crime victims, including victims of sexual
abuse.
Passed the House of Representatives October 27, 2005.
Attest:
JEFF TRANDAHL,
Clerk.